AMERICAS
North Dakota to have new PE Facility
Badlands NGL is developing a new polyethylene facility in North Dakota with an investment of about USD 4 billion. This facility will use North Dakota’s natural gas liquid-sourced ethane gas coming out of Williston Basin as a byproduct of oil production. Badlands is working with Tecnicas Reunidas based in Spain and Vinmar Projects based in Houston. The facility would have a production capacity of 1,500 KTA of polyethylene.
Comments: Several companies in North America have planned polyethylene plants to take advantage of abundantly available low-cost ethane feedstock from shale gas. North America is expected to bring over 8,000 KT of additional polyethylene capacity on stream by the end of 2017. Since the region will be over-supplied with polyethylene, companies will focus on exporting their products to Asia, South America, and Europe.
Lion Copolymer to purchase Ashland’s elastomer business
Lion Copolymer will be purchasing Ashland’s elastomer business based in Port Neches, Texas. The transaction is expected to close by December 31, 2014 subject to certain customary regulatory approvals and standard closing conditions.
Comments: This decision is in line with Ashland’s strategy of divesting non-core assets and focusing on higher-margin, specialty chemical businesses. Lion Copolymer closed its SBR unit in Baton Rouge, LA last December and subsequently sold the operations. After this, Lion Copolymer continued to produce EPDM rubber at its facilities in Geismar, LA. This acquisition would put Lion Copolymer back in the SBR business. The Port Neches facility produces emulsion SBR and also special products such as hot styrene-butadiene rubber polymers and high styrene polymers.
Braskem, Oderbrecht expects to finalize the site for Ascent JV soon
Braskem, Odebrecht expects to make a final decision on a proposed polyethylene and feedstock plant for West Virginia by the end of 2015. This site will produce HDPE, LDPE, and LLDPE as well as ethylene via an ethylene cracker. It will source ethane based on natural gas from the nearby Marcellus and Utica shale gas deposits.
Comments: Ascent cracker has been planned to be constructed in West Virginia instead of the Gulf Coast which is the traditional petrochemical hub. The West Virginia location ensures proximity to the huge Marcellus and Utica reserves, where natural gas liquids production has recently increased dramatically. Ascent has licensed Ineos’ Innovene technology for polyethylene production.
Rextac offers upstream investment opportunity to PP users
Rextac is offering polypropylene processors an upstream investment opportunity by buying equity in Rextac LLC, based in Odessa in Texas. Rextac is in the process of re-opening a dormant PP line which has a production capacity of about 270 KT at its Odessa site.
EUROPE
Borealis secures financing for plastic materials R&D
Borealis has secured financing for investment in R&D into plastic materials. The KfW IPEX-Bank loan of USD 95.7 million will support Borealis’ investment in European innovation centers. The project will continue to focus primarily on innovating products in advanced polymers.
Comments: Borealis lays a high focus on innovation through research and development of plastics. The company operates several innovation centers in Europe, the Middle East, and China. Borealis’ Innovation Headquarters in Linz, Austria works in collaboration with innovation centers in Sweden, Finland, UAE, and China on polymer design and development.
Teknor Apex adding a second production line in the UK
Teknor Apex will be adding a second thermoplastic elastomer production line at its United Kingdom facility by 2015. Teknor Apex plans to modify an existing twin screw extrusion line at its plant in Oldbury, England to increase the production of Monprene and Medalist thermoplastic elastomers.
Comments: Teknor Apex manufactures plastic compounds in England and Belgium in Europe. The company acquired the Oldbury, England plant from Chem Polymer, a producer of thermoplastic compounds in 2004. In addition to Monprene and Medalist, Teknor Apex manufactures recycled nylon 6 and 6/6 compounds under the brand Recyclon in Oldbury. Their second manufacturing plant in Belgium produces Sarlinkbr and TPVs for automotive applications.
Lanxess Introduces new Keltan grade
Lanxess has introduced ultra-high molecular weight EPDM grade Keltan 9565Q, which can replace natural rubber in dynamic applications. Keltan 9565Q matches the properties of natural rubber and has the ability to retain these properties after exposure to high temperatures.
Comments: Natural rubber has been widely used in dynamic applications such as automotive engine mounts due to its strength, fatigue resistance, and resilience. However, smaller engine compartment sizes and stricter emission control standards are increasing under-the-hood temperatures in automotives. Since natural rubber is prone to failure at such temperatures, there is a growing need for materials that can offer resilience and dynamic fatigue resistance properties at higher temperatures. The new Keltan grade offers to combine the favorable properties of natural rubber and heat resistance and thus has a good potential to replace natural rubber in dynamic applications.
Rosneft and Pirelli sign MoU to develop synthetic rubber production
Rosneft and Pirelli have signed an MoU for the production and sales of synthetic rubber in the Nakhodka region of Russia’s Far East. This joint project which will form a part of the Far East Petrochemical Co.’s petrochemical cluster will manufacture styrene butadiene rubber.
Comments: Rosneft and Pirelli have consolidated their manufacturing and marketing operations after Rosneft acquired a 13% stake in Pirelli. The two companies will jointly produce synthetic rubbers, including Styrene Butadiene Rubber (SBR)used to manufacture tires, with a technology partner. The deal will expand Pirelli’s market presence in Russia and ensure a consistent supply of raw materials for its tires.
Sekisui introduces stiff boards from PP foams
Sekisui Alveo has introduced Alveocel LPF, a stiff foam board for automotive applications. The boards, which are available in thicknesses ranging from 1 to 5mm are expected to be 50-70% lighter than comparable materials.
Comments: PP foams are commonly used in automotive applications such as impact energy absorbers, knee bolsters, instrument panel components, sun visors, armrests, etc. SekisuiChemical produces polyolefin foams for European markets through their subsidiary SekisuiAlveo. The company has one production facility each in The Netherlands, Germany, and the UK. Sekisui Alveo also produces Alveolit and Alveolen physically crosslinked polyethylene foams, and Alveolux chemically crosslinked polyethylene foams.
MIDDLE EAST & AFRICA
Dow to produce acrylic polymers in Jebel Ali
Dow Construction Chemicals will be launching a new technology for energy-efficient cool reflective roof coatings in the Middle East. The new material is a water-based acrylic polymer designed specifically for the extremely hot temperatures and dust prevalent in the Middle Eastern region.
Comments: Dow Construction Chemicals manufactures construction chemicals such as elastomeric roof coatings, specialty cements, sealants and caulks, etc. Acrylic emulsion polymers are the main components of cool reflective roof coatings that form about 50-55% of roof coatings. Dow is the largest supplier of acrylic-based construction chemicals in North America. Dow Construction Chemicals will expand its market in the region through the new product developed specifically for the region.
ASIA PACIFIC
Shenhua Ningxi awards technology and engineering to CB&I
CB&I has been awarded a technology license and engineering design of a polypropylene unit to be built by Shenhua Ningxia Coal Industry Co. in Lingwu, China. The PP unit will have a production capacity of 600 KTA and will use Lummus Novolen technology.
Comments: This will be Shenhua Ningxia Coal Industry’s third PP line operating Novolen technology. The site has two PP units using Novolen technology, each with cascade and parallel production lines. With the introduction of the third unit, this will become the largest PP production site in China and will also have the largest capacity among the Novolen technology licenses.
Mitsui establishes a marketing base in South Korea
Mitsui Chemicals has established a marketing hub for functional polymers in South Korea. The new marketing base will eventually grow into a local subsidiary.
Comments: Mitsui’s functional polymers include elastomers, performance polymers, and performance compounds. In Korea, Mitsui Chemicals first established its operations as Kumho Mitsui Chemicals in 1989. Since then, Mitsui Chemicals has expanded its presence in the country. Given that, South Korea is one of the most important automotive and electrical/electronic manufacturers in the world, Mitsui’s new marketing base for functional polymers would contribute to its expansion strategy in this region.